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Framework : Existing R & D Network

R & D KeyStakeholders

Research Institutes/Universities

Government Institutes Universities

Private Companies

Display/LightingManufacturers University Spinouts

Private Funding

Venture Capitalfunding

Corporate Funding

Seed Investors

Government FundingAgencies

University GrantsGovernment Funded

Competitions

Government FundedResearch

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R & D Network Model 1

University

Spinout Company

Public / PrivateCorporateFunding

University /Government

Funding

Venture Capital/Seed Investors

The main objective of the network is to develop a product which would be commercialized by the OEMs which would be doing the corporate funding.

Key Stakeholder Functions/Activities

University/ Government Funding

The R& D network starts with theresearch done in the university /institutelevel. These researches are basicallyfunded by various government fundingagencies.

University Spinout Company

After successful academic researchover a couple of years, a spinoffcompany is started. The spin ofcompany is usually funded by universitygrants and seed/venture capital.The corporate management typicallycomprises the core team from theuniversity/research centre andmembers from the funding agencies.

Public / Private Corporate Funding

The further technology developmentand product development is usuallydone in collaboration with major playersin a particular sector.The R&D for the product is done by thespin-off with the funding from theprivate equity as well as venture capitalfunding.

Strength/ Benefits Weakness

The major benefit for the spinoutis the assurance of a constantdemand for its technology as aresult of the collaboration with themajor player.

The biggest weakness of theabove network is the long time itis going to take for the technologyto be commercialized as spinoutwould do a further research tomodify the technology to suit thespecification of the private equityfirm that is funding the research.

The major benefit for the privateequity firm is that its is a providedwith a well researched technologywith a proven background.

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R & D Network Model 1 (Example)

QD Vision

LG Display

MIT /Government

Funding

Venture Capital/Seed Investors

The base technology wasdeveloped by a group ofresearchers at MassachusettsInstitute of Technology. Theresearch was headed byVladimir Bulovic who is right nowa member of the scientificadvisory team of the company.

The company was started bySeth Coe-Sullivan, Greg Moellerand Jonathan Steckel, allresearchers in the VladimirBulovics group founded thecompany on August 23, 2004 tocommercialize work begun atMIT on quantum-dot displaymaterials, processes anddevices.

On Dec1. 2010 LG Display announcedthat it has signed an agreement withQD Vision for developing QDEFtechnology and integrating it with itsrange of display products.

QD Vision has been backed by manyventure capitals. The main ones areHighland Capital Partners, NorthBridge Venture Partners, OpenInnovation Ventures, In-Q-Tel and DTEEnergy Ventures. The list of venturecapital funding is as follows:QD Vision received $6M in Series Afunding.QD Vision received $9M in Series BfundingQD Vision received $10M in Series Cfunding.QD Vision received $3M in VentureRound funding.QD Vision received $22M in Series Dfunding

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Funding available forCompany 2

Private EquityFunding

GovernmentAgencies

Funding

VentureCapitalFunding

CorporateVenture Capital

Division

Private EquityFunding

GovernmentAgencies

Funding

VentureCapitalFunding

CorporateVenture Capital

Division

Funding available forCompany 1

New QD technology based on both the technologies

Company Developing Technology 1

Company Developing Technology 2

The main objective of the above network is to develop a product/ technology which would be a combination of the technology of new technology based on 2different technologies developed by 2 different companies.


Private Companies

The main stakeholder in this type ofnetwork are the two companies thatare collaborating to form the jointventure.Both the companies involved in theR/D technology could be a startup/spinout/Major private company or astartup company backed by a major

company.

Funding Agencies

Another key stakeholder in thenetwork is the various fundingagencies that are involved in theR&D network. These fundingagencies are responsible forproviding enough resource for thecompanies to commercialize thetechnology.


The main advantage of this model, isthat both the companies can leverageon each other technologies and hencecan develop a better technology faster

There is an imbalance in levels ofexpertise, investment or assetsbrought into the network by thedifferent partners leading to lack ofclarity of the objective of the R& Dnetwork.

Another benefit of the model is thereduced business risk for eachcompany as the risk gets sharedbetween both the companies.

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Private Equityof 3M

Arch VenturePartners,

Polaris VentureCapital,

Venrock andEl DoradoVentures

Nanosys, Inc. Optical Division of 3M

LCD Displays

Using

As the part of thestrategicagreement,Nanosys willcontribute its QDEFtechnology andrelated patents to

the alliance.

Part of thedevelopment costalso will also beshared by theNonosys.

As the part of theagreement 3Mwould be bring itsexpertise inengineering, designand supply chainfor thedevelopment of thedisplay technology.

Also a part of thetotal developmentalcost would becontributed by 3Mas part of theagreement.

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PrivateCompanies

Universities/

ResearchInstitutes

GovernmentAgencies

CooperativeResearch andDevelopmentAgreements

The main objective of the above network is to leverage the technological advances made by the participating companies and universities to create a newtechnology. The commercialization of the above technology is done as per the agreement signed by the stakeholders.


Private Companies

The private companies dependingon the agreement could be acting asa joint research partner or just afunding partner for the research.

Universities/Research Institutes

The main research activity isperformed by the research institute.This activity could be a either aresearch on a previous technology

developed by the university or couldbe a completely new research.

Funding AgenciesThe government agencies usuallyact as the major source of fundingfor the research being conducted.


The biggest advantage of the above model for a university is that it will not haveany shortage in funding to continue with its research. Also it will be able toleverage the technical expertise of the private company which it turn can help infaster commercialization of the technology.

The major disadvantage of the above network lies in the fact that the thereis a lack of certainty about the organizational form and hence can lead toanti-trust cases and patent infringement by the various stakeholdersinvolved.

Another major advantage of this model for the private company is it will haveaccess to an already researched and established technology and hence will not

have to spend money from the scratch. Also with government being a majorsource the company will not have to spend a lot of money.

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IndustryParticipants

The industry participants led byZyvex Labs use their expertise inmanufacturing to develop robustQDs with atomic precision undercomputer control.

University

Participants

The university participants such asuniversity of Texas and university

of Florida will add their expertiseand lad equipment for theresearch activities.

GovernmentInstitutes

Government institute s likeNational Institute of Standards andTechnology (NIST) and the NorthTexas Regional Center forInnovation & Commercialization(NTXRCIC) will add their expertiseof nanotechnology.

Funding Agencies

The basic funding of the entireresearch is done by DARPA ($5miliion) and Texas ETF ($4.5million).

IndustryParticipants

GovernmentInstitutes

FundingAgencies

UniversityParticipants

Consortium for

Manufacturing

QDs

The goal of this effort is to develop a new manufacturing technique that enables "Tip-Based Nanofabrication" to accelerate the transition of nanotechnologysuch as QDs from the laboratory to commercial products.

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R & D Focus Areas : Framework

R & D KeyFocus Areas

Display

Manufacturing

Continuousflow process

Inkjet-PrintingMethod

Technology

Electro-luminescent

QDs

Photo-luminescent

QDs

Lighting

Materials

Cadmium freeQDs

Graphene asQDs

Technology

Photo-luminescent

QDs

Electro-luminescent

QDs

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R & D Focus Area : Display (Manufacturing)

Focus Area Specific Area of Focus Organizations Activities/Developments

Quantum Dot

Manufacturing for

Display Applications

Continuous flow processQuantum Materials

Corporation

Quantum Materials Corporation as a part of an

agreement with Access2Flow consortium of

Netherlands are working on a methodology to

mass produce quantum dots with improved yield

and conversion over the current manufacturing

techniques such as batch quantum dot synthesis.

Mass production of Quantum dots will enable the economy of scales thus helping not only to reduce the

cost by also to meet the demand for current applications like phosphor replacements for LCD displays.

Inkjet-Printing

Method

University Of Oulu

Researchers from University of Oulu is working

on novel methodology to manufacture CdSe

core/ZnS shell nanoparticles by inkjet-printing in

air and then sandwiching between organic holeand electron transport layers to produce efficient

photon emissive media.

Cost - efficient methodologies like inkjet printing will help reducing the overall manufacturing cost of QD

displays. This will help in faster adoption of these QDs for Display manufacturing process as

electroluminescent display devices.

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R & D Focus Area : Display ( Technology )

Focus Area Organizations Activities/Developments Impact

Quantum Dot display

applications based on

technology

Quantum Dot

Embedded

Optical Films

Nanosys,LLC, United States

Nanosys Quantum Dot Enhancement Film (QDEF)

enables LCD manufacturers to deliver a better visual

experience using their existing manufacturing process.

QDEF active material is composed of Nanosyss

proprietary, high efficiency quantum dot phosphors.

Nanosys holds over 400 patents for various technologies

used to develop this product

Phosphor replacement Quantum dots LCD displays have been demonstrated to have more colour gamut

and efficiency compared to conventional LCD displays. With further improvement in performance and

cost a wide scale adoption of Quantum Dots can be expected in the near future.

Display

Applications

with QDs as

light emittingsources.

Samsung Advanced Institute of

Technology (SAIT), Korea

SAIT adopted a new patterning method referred to as

transfer printing. SAIT created red, green and blue QD

films on separate wafers. The printed QDs are picked

from wafer and transferred to the substrate using stamps.

This methods enables larges scale electroluminescent

quantum dot display development.

Electroluminescent Quantum Dots are more efficient both in terms of performance as well as power. The

above technology once developed in a cost efficient manner would not only replace the conventional

display methodologies like LCD but also the upcoming ones like OLEDs and FET displays.

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R & D Focus Area : Lighting (Materials)

Focus AreaSpecific Area of

FocusOrganizations Activities/Developments

Materials used for

Manufacturing Quantum

Dots for Lighting

Applications

Heavy metal-free

quantum dotsNanoco Group PLC, UK

Nanoco produces heavy metal-free quantum

dots which show bright emission and can be

tuned from ultra-violet, through the visible

spectrum, into the near infrared. The quantum

dots produce by Nanoco is RoHS compliant.

The Restriction of Hazardous Substances Directive (RoHS) aims to restrict certain dangeroussubstances like Lead (Pb) and Cadmium (Cd) commonly used in electronic and electronic

equipment. This above directive forces the need for development of Cadmium free Quantum

Dots. The directive is currently implemented actively in U.K and will have be adopted soon in

other parts of US and EU. Hence development of RoHS compliant quantum dots will help in

maintaining the adoption of phosphor replacement QDs in not increase it.

Graphene QuantumDots

Beijing Institute ofTechnology, China

Researchers for Beijing Institute of Technology

are currently researching on finding novel

method for manufacturing graphene quantum

dots (GQDs) on a cost- efficient large scale

methodology.

GQDs have presented extraordinary properties like unique optical and electronic properties, and

the promise of GQDs in energy-related devices such as light-emitting diodes are immense.

Development of these QDs will help in wide scale adoption of QDs in lighting applications due to

their high CRI and better power consumption efficiencies.

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R & D Focus Area : Lighting (Technology)

Focus Area Specific Area of Focus Organizations Activities/Developments

Quantum Dot lighting

applications based on

technology

Phosphor Replacement

QDs

WiSys Technology

Foundation

WiSys Technology Foundation has developed

new solid state lighting technology that uses

quantum dot phosphors to produce high quality

white light.

Light-emitting diodes are currently fabricated from direct-gap semiconductors using epitaxy, which

makes them expensive and difficult to integrate with other materials. Light-emitting diodes based on

semiconductor quantum dots, on the other hand, can be solution-processed at low cost, and can be

directly integrated with silicon making them cheaper and more efficient. Hence can lead to an

increase in adoption rates of quantum dot based LEDs.

Electroluminescent QDs

for Lighting

School of Engineering and

Applied Science of Harvard

University

The QDs are made of CdSe and ZnS, while the

electrical contact is made through two layer of

aluminium-doped zinc oxide (AZO). The use of

octadecylamine (ODA) as a ligand in the

synthesis and deposition of the QD and the use

of Atomic Layer Deposition process (ALD)

instead of the standard evaporation technique, to

deposit a layer of aluminium oxide on the dots.

Electroluminescent QDs compared to current LED , CFL has better power conversion and CRI. Also

these devices are cheaper and more flexible opening a wide range of new lighting application. On a

long term basis these QDs are expected to be widely adopted across sectors ranging from defence

to general lighting.

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Emerging Business Models

Solvay, Sentury Reage

Omicron Nanotechnology,

Veeco Instruments,

Tokyo Electron

Quantum Dot Manufacturers

It includes suppliers of Quantum dots

made of Cadmium, zinc, Selenium

and graphene.

Lighting Manufacturers

It includes developers of products

such as LED Lamps and QD-based

lighting products

Display Manufacturers

It includes developers of products

such displays for mobiles,

televisions

And computers

Quantum Dot

Technology Providers

It includes suppliers of Quantum dot

based technology devices such as

Photo luminescent Quantum dot

films, Electroluminescent QLED, QD

crystals for other display and lighting

applications.

Technological Concept

These includes universities and

companies that work on R & D of

the technology

Raw material Suppliers

It includes suppliers of chemicals

like Cadmium, zinc, Indium,

Arsenic, Silicon, Selenium, etc.

Tools and EquipmentProviders

It includes equipment suppliers for

the manufacture and testing of

Quantum dots.

Nanosys, LLC, Nanophotonic, QD Vision

and QLight NanotechNIST, Ocean Nanotech

Nanoco Technologies, QD solution,

Nanosquare, ,Evident technologies

Samsung, LG Innotek, 3M, Merck KGaA

Nexxus Lighting, CREE Lighting

DistributionChannel

Revenues

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Emerging Business Models (Cont..)

Joint Venture Model Nanosys and Samsung Electronics

This model in one of the most prominent models in the QD industry. In this model 2 or more companies come together to develop a technology

and commercialize the product based on the technology. For ex: Nanosys develops a thin optical film that is used as a phosphor replacement for

LCD displays. Nanosys has collaborated with Samsung who will integrate and commercialize their LCD displays. The biggest advantage of this

model is the fact that QD developers are able to utilize the supply chain of giants like Samsung and LG, thus improving the adoption of the QD

technology based products.

R&D Based Business Model Ocean Nanotech, USA

One of the most emerging models in this technology is the Q&D based model in which a company/institute acts as an outsourced partner foranother company. The company/institute develops the technology/product and the other company commercialized the product. This type of

business model is followed by Ocean Nanotech which develops the QD technology/ product based upon the requirements of its clients. The

clients then commercialize the product. The biggest advantage of this model is that the startup doesnt have to worry about the supply chain and

hence is only concerned with the QD technology/product development. These models are usually adopted by large display/lighting companies

who get the benefit of getting a ready made technology in hand and hence is able to reduce the time to market for the QD product.

Licensing Based Model Evident Technologies, USA

Another model that is currently emerging is the licensing model. In this a company/institute licenses its technology to another company who

develops the product and commercializes the product on their own. This type of model is followed by Evident Technologies who recently licensed

many of their display and lighting patents to Samsung. Samsung will use these patents to develop their products which they plan to

commercialize. The biggest advantage of this model is again the company doesnt have to worry about the product commercialization. As for the

licensee company, they are getting a ready made technology and hence dont have to begin their research from scratch and hence can easily

reduce the commercialization time frame.

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Global R&D Network Analysis

Environmental Analysis

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Key Technology Drivers in QD TechnologyMarket

Better LightEmittingEfficiency

Wider ViewingAngle

Smaller sizecompared tocurrent LED

chips Better powerconsumption

efficiency

Improvedflexibility

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Key Drivers in QD Technology Market(Cont..)

Quantum dot have inherent technology advantages such as better energy efficiency, better colorrendering index, better colour quality, more effective design and much low power consumptionwhich makes them an attractive substitutes for the current display technologies such as LCDs andOLEDs. However most of the QD technology is still under development and hence the short termimpact of the QD technology due to its inherent capabilities is going to be very low. However someof the display products such as phosphor replacements QDs for LCD are expected to reach betterefficiency by the mid term and hence a high impact can be expected on a the mid term and long

term basis.

Inherent Capabilities of Technologies Impact

Short

Term

Mid-

Term

LongTerm

Any disruptive technology requires endless funding to push it towards commercialization especially

if its competitors are well established industry products like LCD displays. Quantum Dot R&D hasbeen witnessing huge investments for product development as well as mass production techniquesto speed up the process of commercialisation. The funding has been from both government as wellprivate sources such as venture capital and private equity. This driver will have a high impact onthe QD adoption during the mid term as this funding will lead to more efficient R/D leading to betterproducts during this period. The long term impact of this driver is considered to be low to medium.

Funding Support Impact

Short

Term

Mid-

Term

Long

Term

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Another key driver for any disruptive technology is the participation of all key market participants asthese companies not only bring there technological expertise but also other key resources likesupply chain as well as funding. Another major impact of this driver is it allows the small andmedium sized companies such as Nanosys and QD Vision to concentrate on just the developmentof one part/technology of the entire QD device instead of the entire device. The impact of the keymarket players' participation is considered to be high in mid term and long term basis as majorproduct commercialization is expected to happen during these periods.

Participation of key market players Impact

Short

Term

Mid-

Term

LongTerm

The current LCD display market is expected to be around $1 billion according to the latest Frostand Sullivan studies. This huge market potential would in turn result in increased playerparticipation resulting in substantial growth in the QD display market during the medium and longterm basis. In the short term this driver would have a medium term effect as some companies havealready released products which have efficiency comparable if not better than the current displaytechnologies available.

Huge Market Potential Impact

Short

Term

Mid-

Term

Long

Term

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Another major driver for the QD technology is the growing increasing awareness and concern forenvironment and fast depletion of non renewable resources of energy. This has resulted in agreater demand for less power consuming and more efficient technologies for both display andlighting applications. QDs with there inherent advantage of being a both photo luminescent as wellas electroluminescent product is able to cater effectively to these requirement. This driver isexpected to have a high impact on QD development during the short term and mid term but withthe technological advances the impact will fall to medium during the long term basis.

Demand for eco friendly Technologies Impact

Short

Term

Mid-

Term

LongTerm

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Challenges in QD Technology Market

Saturation ofmarket

High Initial Costof Purchase

Technicaldisadvantages

Time forcommercialization

Presence ofcompeting

technologies

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Key Challenges in QD Technology Market(Cont..)

High Initial Cost of Purchase Impact

Short

Term

Mid-Term

Long

Term

Saturation of market Impact

Short

Term

Mid-

Term

Long

Term

One of the major challenge has been the high initial cost of QD based devices. As the technologyis in the nascent stage the manufacturing of the technology is yet to reach the stage whereeconomies of scale would result in reduced price for the commercialized product. Also theQuantum dot manufacturing add extra cost in development and implementation which adds up tothe total cost of device. However with the rapid progress in the QD technology, this challenge isexpected to have a decreasing affect as the time passes and is expected to pose a very low impactin a long term perspective.

Another major challenge for the QD industry is the long life time of QD as well as the competingproducts. Due to this long life time the rate of replacement for these products are very low and

resulting in the complete saturation of the market. Right now as all the products are in a veryemerging stage the impact of this challenge would be low. However with the development in QDtechnology as well as its competing technology the challenge is expected to increase in impact andis expected to have a very high impact on a long term perspective.

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Presence of competing technologies Impact

Short

Term

Mid-Term

Long

Term

Time for commercialization Impact

Short

Term

Mid-

Term

Long

Term

One of the major challenge has been the high initial cost of QD based devices. As the technologyis in the nascent stage the manufacturing of the technology is yet to reach the stage whereeconomies of scale would result in reduced price for the commercialized product. Also theQuantum dot manufacturing add extra cost in development and implementation which adds up tothe total cost of device. However with the rapid progress in the QD technology, this challenge isexpected to have a decreasing affect as the time passes and is expected to pose a very low impactin a long term perspective.

Another major challenge facing the QD manufacturers is the lack of efficient QD dot manufacturingtechniques and equipments. Up until now QDs are being manufactured using the same technique

that has been used for other nanomaterial which is not only decreasing the performance efficiencybut also leading to wastage during production. However with the improvement of technology andadoption rates it is expected that QD manufacturing technologies and equipment would also bedeveloped leading to efficient, low-cost and high volume production of QDs.

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Inherent disadvantage of the technology Impact

Short

Term

Mid-Term

Long

Term

Certain inherent disadvantage such as printing techniques which effect the longevity of theproduct and colour quality are yet to completely resolved which is proving a major hindrance foradoption of the electroluminescent quantum dot. However with the recent advances made by thecompanies such as Nanophotonica and Ocean Nanotech, this challenge would have a low impactin the mid-term and longterm.

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Regulatory/Standards Compliance

Regulations specifically targeted for the Quantum Dot development and manufacturing are yet to be formulated on a global basis. Mostof the regulation are either adopted from electronic device manufacturing or from nanotechnology manufacturing process. This hasinvariable led to public concerns for environmental, health, and safety factors which could act as a roadblock against industry efforts to

develop QDs.

Carbon-, Silica derivatives below the size of 100nm are considered harmful and henceshould be certified before use.

Fullerenes and modified fullerenes used commonly for quantum dot manufacturing hasbe first certified by TSCS before usage.

EPSs Toxic SubstancesControl Act (TSCA)

The Restriction of Hazardous Substances Directive (RoHS) aims to restrict certaindangerous substances like Lead (Pb) and Cadmium (Cd) commonly used in electronicand electronic equipment. This above directive forces the need for development ofCadmium free Quantum Dots. The directive is currently implemented actively in U.K andwill have be adopted soon in other parts of EU.

EUs Regulation onHazardous

Substances(RoHS)

Section 4 of this rule requires the testing of certain nanomaterial before usage in anymaterial.

Section 8(a) requires the reporting of all available use, production volume, exposure andtoxicity for existing nanoscale materials.

EPAs Significant New UseRule (SNUR)

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